As indicated by A, the FBM KLCI tested the 14, 21, 31 EMA again, gaining 9.49 points or 0.62%. If the KLCI could successfully break above the 14, 21, 31 EMA, the next resistance for the KLCI would be found at 1538 WinChart Automatic Fibonacci Retracement. Support for the KLCI remains at 1513 followed by the 1489 or 1500 level.

As indicated by B, total market volume increased 22.2%, but it has not broken above the 40-day Volume Moving Average. If volume could break above the 40-day Volume Moving Average, it means that the market participation is improving, and it would help lifting the market sentiment as a whole.

As circled at C, the Stochastic breaks above 30% by margin, and it is about to break away from the short term weakness status. If the Stochastic could continue rising, the KLCI short term movement would be back to neutral. As for short term bullishness, the Stochastic would have to break and stay above 70%.

In short, the KLCI is breaking away from its short term weakness, and if the KLCI could successfully break above the 14, 21, 31 EMA, it would be forming a higher-low, which is a sign of an improvement of technical outlook. But as for whether the KLCI could resume its uptrend which started in 2009, the KLCI would have to break above the 1566 and 1577 resistance.

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